# 119-s-1821: Tackling Predatory Litigation Funding Act

119-s-1821, Tackling Predatory Litigation Funding Act, is a 119th Congress bill sponsored by Sen. Tillis, Thomas [R-NC] (R-NC); status introduced; PRIA reads it as touching household money (as of 2026-07-15).

- Canonical: https://policyrisk.com/legislation/119-s-1821
- As of: 2026-07-15
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1821
- Congress: 119
- Title: Tackling Predatory Litigation Funding Act
- Status: introduced
- Introduced: 2025-05-20
- Sponsor: Sen. Tillis, Thomas [R-NC] (R-NC)
- Cosponsors: 8
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-07-15

## Summary

**Creates a new federal tax on profits earned by third‑party litigation funders.** The bill would add Chapter 50B to the Internal Revenue Code to tax and define income from litigation financing and to require withholding, effective for taxable years beginning after December 31, 2025. - Third‑party funders. Profits that a covered party receives from a litigation financing agreement would be treated as "qualified litigation proceeds" and taxed at an "applicable percentage" equal to the highest individual tax rate plus 3.8 percentage points. - Payers and law firms. A named party or affiliated law firm that pays a funder would need to withhold tax equal to 50 percent of the applicable percentage on payments to the funder. Withheld tax is the withholding party's liability and is creditable to the recipient with refund and credit procedures. - Entity and tax‑treatment rules. For partnerships and S corporations the new tax applies at the entity level. The bill also changes capital asset rules and adds a new provision on qualified litigation proceeds to Subchapter B for tax treatment and definitions.

## Cosponsors (8)

- Sen. Husted, Jon [R-OH] (R-OH), 2025-05-22T00:00:00.000Z
- Sen. Moreno, Bernie [R-OH] (R-OH), 2025-06-05T00:00:00.000Z
- Sen. Moody, Ashley [R-FL] (R-FL), 2025-06-05T00:00:00.000Z
- Sen. Grassley, Chuck [R-IA] (R-IA), 2025-06-10T00:00:00.000Z
- Sen. Daines, Steve [R-MT] (R-MT), 2025-10-09T00:00:00.000Z
- Sen. Sheehy, Tim [R-MT] (R-MT), 2026-02-26T00:00:00.000Z
- Sen. Ricketts, Pete [R-NE] (R-NE), 2026-04-28T00:00:00.000Z
- Sen. McCormick, David [R-PA] (R-PA), 2026-07-13T00:00:00.000Z

## Provisions PRIA read

- New taxes and rules for lawsuit funders: mixed, high. This bill would create a new tax on profits from third-party lawsuit funding. The tax would equal the highest individual tax rate for the year plus 3.8 percentage points. Partnerships, S corporations, and other pass-throughs would pay the tax at the entity level. Named parties or law firms that con…

## Related bills

- 119-s-401: Fair Access to Banking Act
- 119-s-186: No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025
- 119-s-1404: Combating Organized Retail Crime Act
- 119-s-128: SAVE Act
- 119-s-65: Constitutional Concealed Carry Reciprocity Act of 2025
- 119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former United States Senator for the State of Kansas.

## Sources
- [119-s-1821 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1821)

## Related
- [119-s-401: Fair Access to Banking Act](https://policyrisk.com/legislation/119-s-401)
- [119-s-186: No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of…](https://policyrisk.com/legislation/119-s-186)
- [119-s-1404: Combating Organized Retail Crime Act](https://policyrisk.com/legislation/119-s-1404)
- [119-s-128: SAVE Act](https://policyrisk.com/legislation/119-s-128)
- [119-s-65: Constitutional Concealed Carry Reciprocity Act of 2025](https://policyrisk.com/legislation/119-s-65)
- [119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former Uni…](https://policyrisk.com/legislation/119-sres-913)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1821 (as of 2026-07-15).